MGMT 108 Lecture Notes - Lecture 11: Social Capital, Rotary International, Religious Corporation
Document Summary
Nature of professional corporations: the act permits certain licensed professional activities to be conducted in the corporate form, including law, medicine, dentistry, and accountancy. Formation: in general, a professional corporation is formed in the same way as any other corporation, subject to the following requirements: Articles must contain a special purpose clause. A statement in the articles that the corporation is a professional corporation. Formation: in general, a nonprofit corporation is formed in the same way as any other corporation, subject to certain exceptions in preparing the articles and bylaws. Must be organized and operated exclusively for charitable, religious, scientific, literary, and/or educational purposes. Cannot substantially engage in activities that are unrelated to group"s tax-exempt purpose. For example, a corporation formed to promote literacy should not spend too much time running a for profit book sales operation. Cannot be organized to benefit individuals associated with the corporation.
